A friend in the field had told me that they preemptively make donations to offset their taxes. Let say it’s 1million dollars. they put up 1 million dollars of their own money, then they gather donations at the till towards this charity to pay themselves back for the money they spent.
That’s not how it works, at all. Businesses can’t claim donations they collect on behalf of a charity as a deduction.
They can lie and misreport. And if nobody in the state/federal bureaucracy follow up, they get away with it.
A friend in the field had told me that they preemptively make donations to offset their taxes. Let say it’s 1million dollars. they put up 1 million dollars of their own money, then they gather donations at the till towards this charity to pay themselves back for the money they spent.
Again just what I’ve heard.
Your friend is wrong, or the company he works for is committing fraud.
Well yes, it’s a corporation.
I had a friend who once told me his brother discovered Alaska while riding in a hot air balloon. I wonder if we have the same friend.
“Had a friend at a business report that the business was casually doing fraud to lower their tax liability.”
“Oh yeah? Well I had a friend who reported he is a talking monkey who lives in Mars.”
“Damn, both of these stories sound equally far-fetched and unbelievable.”
Possibly, is his name Jeff?